BoT’s crackdown on forex bureaux puts Posts Corporation into gear

07Mar 2019
The Guardian Reporter
The Guardian
BoT’s crackdown on forex bureaux puts Posts Corporation into gear

DOZENS of bureau de change shops in Dar es Salaam remain closed following Bank of Tanzania’s crackdown against shops trading currencies irregularly.

Postmaster General, Hassan Mwang'ombe briefing journalists in Dar-es Salaam on his organization’s strategy to strengthen Tanzania Posts Corporation’s bureau de change shops countrywide following Bank of Tanzania’s statement on closure of several private money changing shops in Dar es Salaam last week. Left is General Manager for Business Operations, Mwanaisha Said and General Manager for Corporate Resources, Macrice Mbodo. Photo: courtesy of TPC.

The central bank’s move has awakened Tanzania Posts Corporation management (TPC) to swing into action and announce a major investment to open new money changing shops at each of its major offices countrywide.

“We are going to open new currency changing shops at each of our postal offices in the country where convenient,” said Hassan Mwang’ombe, the Postmaster General.

Mwang’ombe said in Dar es Salaam last week almost simultaneously with BoT’s announcement that dozens of private currency trading shops which failed to comply with regulatory licenses would be closed down indefinitely.

“We have a wider network of shops countrywide which are ready to trade in currencies,” the Postmaster General said while promising to ensure that the vacuum created by closed bureau de changes will be filled immediately.

Last week, the central bank which had carried out raids on currency trading shops in Dar es Salaam to conduct an impromptu audit of their activities following a similar exercise done in Arusha end last year, said the exercise will continue in other parts of the country.

“On February 27, 2019, Bank of Tanzania conducted normal inspection of bureau de changes in Dar es Salaam and established that many of the shops operated without following the law, regulations governing their businesses,” said the central bank in a statement after the crackdown.

BoT said following the inspections which found out the irregularities, an exercise to deregister all culprit shops was underway and that the exercise will continue for the foreseeable future. It further noted that during its December 2018 similar inspection exercise countrywide, it was established that many were operating clandestinely.

“We officially wrote the culprit shops asking owners to give reasons why their shops should not be deregistered because of failure to abide by regulations,” the BoT statement stated while urging the public to trade their currencies at licensed commercial banks and Tanzania Posts Corporation forex shops.

“The central bank would like to warn the public to refrain from changing their foreign currency at unlicensed shops or individuals in the black market,” said the BoT statement while warning the public against prosecution for violation of regulations.





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